Nvidia Reports Record Growth, Faces Investor Concerns Over Future Demand

Despite a strong earnings report driven by AI chip sales, Nvidia's stock performance reflects tempered expectations and potential risks ahead.

Nvidia's Q4 revenue surged 78% year-over-year to $39.3 billion, beating analyst expectations, with data center revenue growing 93%.
The company's new Blackwell chip architecture experienced its fastest product ramp ever, generating $11 billion in revenue during the quarter.
Profit margins dipped slightly due to increased production costs, but Nvidia expects margins to recover to mid-70% levels later this year.
Investor sentiment has cooled as market expectations adjust to Nvidia's consistent growth, with concerns about potential demand slowdowns and competition from cost-effective AI solutions like DeepSeek.
Analysts remain divided on Nvidia's medium-term prospects, citing risks like geopolitical tensions, regulatory challenges, and hyperscaler spending scrutiny.